Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    The US Dollar could get a lift if the Fed pushes back on market expectations for cuts – Commerzbank

    Source Fxstreet
    Jan 31, 2024 10:22

    Michael Pfister, FX Analyst at Commerzbank, discusses how the Federal Reserve’s rate decision could impact the US Dollar (USD).

    What does Powell surprise us with today?

    For the Dollar, the key question may not be whether the first move comes in March or May. Rather, it is how quickly the Fed cuts rates after that. 

    If Fed Chair Jerome Powell is more decisive than last time in pushing back against the rather ambitious expectations for this year, then the Dollar should benefit again. However, given his surprising reversal in December, when he said that the Fed was not interested in market expectations, and the fact that only slightly more rate cuts have been priced in since then, I find it hard to imagine that this will happen. But after the December meeting, you have to realize that any surprise is possible. So perhaps the key question is: what does Powell surprise us with today?

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
    placeholder
    Dow Jones Industrial Average dips into losses as market sentiment falters Wall Street turns lower with investors turning cautious ahead of US CPI release.
    Source  Fxstreet
    Wall Street turns lower with investors turning cautious ahead of US CPI release.
    placeholder
    Another tough week for Dollar bears – INGLooking ahead in this holiday-shortened week, economists at ING expect a firm US inflation print on Friday.
    Source  Fxstreet
    Looking ahead in this holiday-shortened week, economists at ING expect a firm US inflation print on Friday.
    placeholder
    US Dollar set to close 1.5% stronger than two weeks agoThe US Dollar (USD) is basking in the glory of re-founded belief from traders. Whereas last year markets were challenging the US Federal Reserve (Fed) by pricing in more rate cuts than what the dot plot suggested, investors are now defying the US
    Source  Fxstreet
    The US Dollar (USD) is basking in the glory of re-founded belief from traders. Whereas last year markets were challenging the US Federal Reserve (Fed) by pricing in more rate cuts than what the dot plot suggested, investors are now defying the US
    goTop
    quote